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Ashley takes sportswear blow

In the same week Mike Ashley announces that Newcastle United will not be sold, his Sports Direct company has lost its stake in outdoor chain Blacks Leisure.

The multi-millionaire’s retail company lost its stake after administrators of failed Icelandic bank Kaupthing Singer and Friedlander (KSF) took control of the holding.

The announcement by Blacks Leisure of the loss of the sportswear firm’s 29% share came only a day after its 11% stake in JD Sports Fashion also passed to KSF.

Sports Direct, owner of the Sports World chain, fought a legal battle with administrators over the stakes, which were partly financed by the bank.

It has already taken a £53.1m hit in its annual results over the shares after conceding that it did not control the shares for accounting purposes.

Sports Direct’s debts stood at £431m as of the end of April.

The stake in Blacks Leisure is worth about £3.6m. He reportedly made an approach to buy the entire business this year, and in 2007 threatened to remove the company’s board over plans to sell its Freespirit boardwear.

Blacks is struggling to secure its financial future after warning it would breach its lending terms after a sudden trading downturn.

The firm agreed a £40m facility with Lloyds Banking Group in July, but has embarked on a restructuring of the business which has seen its O’Neill boardwear stores in administration.

This was posted in Bdaily's Members' News section by Ruth Mitchell .